1. Demonetisation effect: Don’t be a black money mule for someone else! Modi government warns of strict action

Demonetisation effect: Don’t be a black money mule for someone else! Modi government warns of strict action

Demonetisation: The government has warned that those who are using other people's bank accounts to convert their black money will be severely punished.

By: | Published: November 18, 2016 4:06 PM
demonetisation, demonetisation news, demonetisation effect, black money, demonetisation effect in India, modi on black money Demonetisation: Those who allow their accounts to be misused for this purpose will also face prosecution. (PTI Photo)

Demonetisation: The government has warned that those who are using other people’s bank accounts to convert their black money will be severely punished. Not only that, those who allow their accounts to be misused for this purpose will also face prosecution. In a series of tweets, the Finance Ministry said, “Tax evasion activities by some people using other persons’ Bank A/Cs to convert their black money can be subjected to income tax & penalty. Also the person who allows his or her bank account to be misused for this purpose can be prosecuted for abetment under Income Tax Act.” The Finance Ministry’s tweets come in wake of reports that people may misuse JanDhan accounts to deposit their black money, paying a premium to the poor person who is allowing his/her bank account to be used.

“However, the genuine persons having their own household savings in cash and depositing the same in the bank would not be questioned. People are requested NOT to come in the lure of black money converters & be a partner in this crime of converting black money into white,” the Finance Ministry said.

Struggling to deal with growing anger among the public over cash crunch, the Modi government is issuing new guidelines every few days. These are based on public feedback and are aimed at reducing the problems that common man is facing, following the massive demonetisation drive. To avoid misuse of the exchange facility, the government has reduced the exchange limit from Rs 4,500 to Rs 2,000 effective November 18.

Also read: Demonetisation live blog and updates

Meanwhile, ATMs are progressively getting recalibrated. As and when they are recalibrated, the cash limit of such ATMs will stand enhanced to Rs 2500 per withdrawal. This will enable dispensing of lower denomination currency notes for about Rs 500 per withdrawal. Other ATMs which are yet to be recalibrated, will continue to dispense Rs 2000 till they are recalibrated. Re-calibration of an ATM is a process that involves changes in both hardware and software of the ATM, and is thus time consuming. Banks have been advised to provide all cash withdrawal transactions at their ATMs free of cost to their customers till December 30, 2016.

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